Advances in Economics and Business Vol. 2(2), pp. 70 - 77
DOI: 10.13189/aeb.2014.020202
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Rural Urban Income and Consumption Gaps across Provinces of China, 1978-2008


Keshab Bhattarai 1,*, Nanyue Chen 2
1 Business School, University of Hull, Cottingham Road, Hull, HU6 7RX, UK
2 School of Economics and Management, University of South China, Hengyang, Hunan 421001, China

ABSTRACT

Huge gaps exist and are widening between the rural and urban income and consumption across 32 provinces of China despite very impressive rates of growth of GDP in the last three decades. By pursuing rapid urbanisation and export oriented strategies Chinese policy makers seem to have switched away from the equality oriented linear model of optimal consumption to urban biased inequality tolerating non-linear model of consumption since 1978. Inequality problem will worsen further unless export oriented growth strategies are accompanied by domestic consumption based growth policies.

KEYWORDS
Rural-Urban Consumption Gap, Income Gap, China

Cite this paper
Keshab Bhattarai , Nanyue Chen . "Rural Urban Income and Consumption Gaps across Provinces of China, 1978-2008." Advances in Economics and Business 2.2 (2014) 70 - 77. doi: 10.13189/aeb.2014.020202.